The problems with rental programs, where to begin. I have been trying to come up with a way to describe the following posting and the ones that will follow. I have discovered that there is no way to do this that I like. So I will just say it in the clear.
The following is based on events that have happened to me – my customers– or clients. They are for informational use only. In cases where state law is mentioned you need to check the state law where you live. The advice given should be checked with legal persons, I am not a lawyer and I do not play one on TV.
Before we proceed I want to make one thing clear. I am on no one group’s side. I have seen tenants, landlords, agents, and brokers do both good and bad. All I’m doing is sharing my experiences so that you can better understand what the hell is going on. Or at least become aware, let’s begin.
Section 8 Myths and Facts
Myth: Owners have to take Section 8 tenants.
Fact: An owner can reject any tenant they choose as long as they do not violate Fair Housing Rules
Myth: Owners have to take Section 8 tenants after they see an apartment. They supersede non-Section 8 prospects looking at the same apartment.
Fact: No such rule exists.
Myth: Landlords have to participate in the Section 8 program.
Fact: Owner participation in a program is voluntary.
Myth: Any apartment is good for Section 8.
Fact: The apt must pass inspection to be accepted into the program.
Myth: Agents have to work with Section 8 prospective tenants that approach them.
This is a grey area. New York State law states real estate agents cannot discriminate against people in programs or sources of money. If I refuse to work with a program person that is obnoxious I am not discriminating. Again I am not a lawyer. the preceding was related to me by a state investigator concerning the following matter.
The Craig’s List Incident
When I started in real estate the State contacted me about an ad I placed on Craig’s List. The complaint letter claimed it discriminated against Section 8 tenants and the source of money. The investigator stated that as an agent I had to accept anyone in a program that approached me. (This strikes me as discrimination. Forced to work with one class of people. Not forced to work with another.)
I have to accept but I can stop working with anyone that violates Fair Housing Laws.
Note: The ad had the following line: No Section 8.
Response to letter
My response to the investigator was that the owner did not want to participate in the program. He had nothing against the tenants or source of money.
I also stated:
- My ad was placed in this manner approved at that time.
- The law the inspector was talking about recently passed.
- No effort by the State to inform real estate companies. I know because I checked.
The inspector had no answer as to why real estate companies were not informed of this new law.
Note: Section 8 tenants – especially those with limited funds – prefer to know if the owner participates in programs before calling.
Just saying…
Action Taken By Me
The ad was amended. Prospective Section 8 tenants called. They wasted their minutes and money finding out that the owner did not participate in programs.
Case closed?
Not really, the State in its zeal to help program tenants actually hurt them. Many tenants waste money and minutes calling on a property, not in a program.
Before the change program tenants targeted their calls to apartments that took programs. They called on ads that had the following invitation: Programs Welcomed. This type of ad is no longer allowed. Now they waste time, money and minutes.
The State got this one wrong. Ask any program tenant who wasted a day calling on non-participating apartments.
Summary
We covered some common myths about Section 8 there are many more. Some come from poorly trained program workers, most come from friends or family. Well-meaning but incorrect.
Owners, you now know why you cannot place any ads stating NO PROGRAMS. Owners, agents and brokers beware, you are breaking State law by placing such an ad.
Program tenants, you now know why you’re wasting your money calling on non-program apartments.
Disclaimer
Disclaimer: I am not a lawyer and nothing stated here is legal advice. This article applies to the five boroughs of New York. All information deemed accurate but not guaranteed. Always check the real estate laws in your part of the country.
Comments, Questions, Suggestions?
Was this article helpful? Did you learn anything new? I would like to hear your comments on this and any other article on this site. Take a moment, leave a comment or suggestion. Let’s start a conversation today.
Share This Post
